How does household saving behaviour differ across the economic cycle? Are these decisions rational or simply based on herding behaviour? This research paper says they are irrational,especially during a financial crisis and economic downturn. Part of the reason is financial illiteracy and poor communication by the government and central banks.
The spender marries the saver, it’s such a cliché; but if your fiancé’s financial personality conflicts with yours, rather than going for that prenuptial agreement, you could gauge each other’s financial values with a quiz writes the WSJ blog. How you handle your money is based on deep personal values and could help you show how compatible you are financially.
Pocket money gains
A simple way to combat financial illiteracy is to give pocket money to children, this research paper argues. It concludes that children used to receiving an allowance know more about money and are therefore less vulnerable to under-saving and better equipped for retirement. However, allowances are not affordable for every family.